Gmm1

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Gmm1

  1. 1. MANAGEMENT GLOBAL MARKETING
  2. 2. GLOBALIZATION IMPERATIVE Chapter One
  3. 3. 1 <ul><li>Overview </li></ul><ul><li>1. Why Global Marketing is Imperative </li></ul><ul><li>2. Globalization of Markets and Competition </li></ul><ul><li>3. Evolution of Global Marketing </li></ul><ul><li>4. Appendix </li></ul>Globalization ImperativeChapter One
  4. 4. Overview of Globalization <ul><li>A </li></ul>Imperative
  5. 5. 1 <ul><li>Exhibit 1-1 “Change in the World’s 100 Largest Companies” </li></ul><ul><li>global vs international vs multinational </li></ul>1. Why Global Marketing is Imperative
  6. 6. 1 <ul><li>Exhibit 1-2 “ US Balance of Goods, Services and Income over 20 Year Period” </li></ul><ul><li>International Trade (IT) and International Business (IB) </li></ul><ul><ul><li>IT = exports/imports </li></ul></ul><ul><ul><li>IB = includes IT and foreign production </li></ul></ul><ul><ul><ul><li>export of products </li></ul></ul></ul><ul><ul><ul><li>investment in foreign production </li></ul></ul></ul><ul><ul><ul><li>contract or manufacture in foreign country </li></ul></ul></ul><ul><ul><li>foreign production is larger than IT </li></ul></ul>2. Globalization of Markets and Competition
  7. 7. <ul><li>Global Reach </li></ul><ul><li>United States </li></ul><ul><ul><li>3:1 ratio of foreign products to exports </li></ul></ul><ul><ul><li>6:1 ration of US/European production to exports </li></ul></ul><ul><ul><li>5:1 ratio of European owned US located subsidiaries </li></ul></ul><ul><li>Japan </li></ul><ul><ul><li>2.5:1 ratio of Japanese subsidiaries to Japanese exports </li></ul></ul>2. Globalization of Markets and Competition (cont)
  8. 8. Competition (cont) <ul><li>Who Manages International Trade? </li></ul><ul><ul><li>intra-firm trade </li></ul></ul><ul><ul><ul><li>transfers to affiliates overseas </li></ul></ul></ul><ul><ul><ul><li>30% of US exports </li></ul></ul></ul><ul><ul><ul><li>30% of exports by Japan and Britain </li></ul></ul></ul>2. Globalization of Markets and
  9. 9. 1 <ul><li>What is Marketing? </li></ul><ul><ul><li>satisfies customers needs </li></ul></ul><ul><ul><li>anticipates and creates their future needs at a profit </li></ul></ul><ul><ul><li>reactively and proactively </li></ul></ul><ul><li>Domestic Marketing </li></ul><ul><ul><li>exhibit 1-3 </li></ul></ul><ul><ul><li>ethnocentric </li></ul></ul>3. Evolution Of Global Marketing
  10. 10. 1 <ul><li>Export Marketing </li></ul><ul><ul><li>ethnocentric </li></ul></ul><ul><li>International Marketing </li></ul><ul><ul><li>polycentric </li></ul></ul><ul><ul><li>multidomestic marketing </li></ul></ul><ul><li>Multinational Marketing </li></ul><ul><ul><li>regiocentric </li></ul></ul>3. Evolution of Global Marketing (cont)
  11. 11. 1 <ul><li>Global Marketing </li></ul><ul><ul><li>geocentrism </li></ul></ul><ul><ul><li>reduction of cost inefficiencies and duplication of efforts </li></ul></ul><ul><ul><li>opportunities to transfer products, brands and ideas across subsidiaries </li></ul></ul><ul><ul><li>emergence of global customers </li></ul></ul><ul><ul><li>improved linkages … leading to global market infrastructure </li></ul></ul>3. Evolution of Global Marketing (cont)
  12. 12. 1 <ul><li>Comparative Advantage Theory </li></ul><ul><li>International Product Cycle Theory </li></ul><ul><li>Internalization / Transaction Cost Theory </li></ul>4. APPENDIX
  13. 13. 1 <ul><li>Exhibit 1-4 “Comparative Advantage at Work” </li></ul><ul><li>absolute advantage vs comparative advantage </li></ul><ul><li>commodity terms of trade </li></ul><ul><li>principles of international trade </li></ul><ul><ul><li>1. countries benefit from international trade </li></ul></ul><ul><ul><li>2. international trade increases worldwide production by specialization </li></ul></ul><ul><ul><li>3. exchange rates are primarily determined by traded goods </li></ul></ul>COMPARATIVE ADVANTAGE THEORY
  14. 14. 1 <ul><li>Exhibit 1-5 “International Product Cycle” </li></ul><ul><li>first </li></ul><ul><ul><li>economies of scale </li></ul></ul><ul><ul><li>economies of scope </li></ul></ul><ul><li>second </li></ul><ul><ul><li>technological gap </li></ul></ul><ul><ul><li>monopoly power </li></ul></ul><ul><li>third </li></ul><ul><ul><li>preference similarity (consumption power) </li></ul></ul>INTERNATIONAL PRODUCT CYCLE THEORY
  15. 15. INTERNALIZATION/ TRANSACTION COST <ul><li>multinational companies </li></ul><ul><li>appropriability regime </li></ul><ul><li>dominant design </li></ul><ul><li>manufacturing and marketing ability </li></ul>THEORY

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